District 20 has been a darling of Singapore’s property market when it comes to OCR districts. Although some parts of District 20 come under the RCR, it still managed to clock in decent growth despite a lower disparity gap. The Ang Mo Kio and Bishan area is loved by residents. The Bishan area is known for being the well-connected heart of Singapore. Although it is not the main business district, it is geographically positioned smack in the middle.
Ang Mo Kio is also loved by residents. With the recent new launch AMO almost selling out on its launch weekend, we can tell that there is huge pent up demand for this area. Needless to say, certain homebuyers are also attracted to the popular and reputable schools in this district.
District 20 squeezes into the Top 5 Growth Districts in the OCR with a solid 6.6% Compound Annual Growth Rate (CAGR) and an Absolute growth rate of 21% from 2019 to 2022 Q2. This feature is motivated by our Q2 report done in light of the turbulent macroeconomic changes that are going on in the global economy.
In this article, we will introduce the Top 5 Resale Leasehold Condos in District 20. Now let’s jump right into it and bring you the best in the heart of Singapore.
Fifth Place: Clover By The Park
At fifth place in the rankings, we have Clover By The Park. It is a 99-year leasehold condo with its lease starting in 2007. Completed in 2011 with 616 units, this condo has provided residents with much needed living space with all units sized above 1,200sqft.
It is one of the few condos with around 40% of units providing 1,601 to 1,800 sqft of space. There is also a selection of units offering more than 2,500 sqft of space. This is great for large families or multigenerational homes looking for a comfortable place to live.
From 2019 to 2022 Q2, Clover By The Park transacted at an average psf of $1,496. It has a smaller volume of 77 transactions, possibly because it is such a desirable location. Previous homeowners might find it hard to let go. In addition, Clover By The Park achieved a CAGR of 5.1% and 16.0% in Absolute growth in the same period.
Clover By The Park is located south of Bishan-Ang Mo Kio Park and northwest of Bishan MRT interchange (approx. 1km away). Catholic High School is also within 600m of the condo and Eunoia JC is around 700m away. This residential estate has a good mix of public and private housing as well.
Looking at the larger area, Clover By The Park has a great mix of perks when it comes to location. It has ready access to nature in the form of a large park. It has 3 MRT lines within an accessible range. More importantly, Bishan MRT and Junction 8 are only a short 1km distance away.
Clover By The Parks has a total MOAT Analysis score of 60%. While the location is considered great from the initial analysis, the MOATs adjust our expectations downwards. This is where we ask, “Are we paying too much? Is Bishan overrated?”
Compared to the region, the prices are definitely above average. Although this seems more fairly priced when we look at the district alone. However, the Quantum is not exactly affordable to all Singaporeans. The MOAT Analysis brings more reality into the picture when we look at the scores in totality. Perhaps, there is some reason to believe that properties in this district are quite expensive for what it’s worth.
Nonetheless, it seems that the demand for private properties in District 20 is still fierce and people are willing to pay the premium for the location. In the case of these persistent demand conditions, it may be that a core demographic of higher middle class homebuyers is driving these high prices for Condos in District 20.
Fourth Place: Thomson Grand
Coming in at fourth place, we have Thomson Grand. It is a 99-year leasehold condo with its lease starting in 2010, which can be considered as a relatively young resale condo. It was completed in 2015 with a total of 339 units. Around two thirds of the units are sized about 1,301 sqft.
From 2019 to 2022 Q2, Thomson Grand transacted at an average psf of $1,510 with a total volume of 66 transactions. It also achieved a CAGR of 6.3% and Absolute growth of 20.0% in the same period.
Thomson Grand is located next to Peirce Secondary School, along Sin Ming Walk. This road eventually leads to Bright Hill MRT on the new Thomson-East Coast Line which is only around 400m away. Thomson Grand is located close to Upper Thomson road as well.
Thomson Grand is located along the Kallang River and is found northwest of Clover By The Park. Compared to the previous feature, Thomson Grand has even more access to nature, with Lower Peirce Reservoir and MacRitchie nearby. The MRT is also a lot closer although it is not an interchange.
Thomson Grand scores a total of 66% on the MOAT Analysis. It scores a 5 on Rental Demand and MRT Effect. The Volume Effect, Bala’s Curve Effect, and Landsize Density Effect also do decently with a score of 4. District 20 seems to still be more pricey compared to the region at large. Among District 20 condos, Thomson Grand seems to be close to the median.
Thomson Grand is located among many private properties and Landed homes, this might be a perk to some homebuyers. However, it would seem that there are not as many nearby primary schools for this location. This condo does, however, have time on its side as it is very young for a resale condo.
This particular condo might appeal to nature lovers who love a good mix of different locations to enjoy the green and blue. With the north-south corridor in the URA plans, properties in District 20 will look to benefit from greater accessibility especially for cyclists.
Third Place: Grandeur 8
In third place, we have Grandeur 8, a 99-year leasehold condo with its lease starting in 2002. It was completed in 2005 with 579 units, all of which are comfortably sized above 1,100 sqft.
From 2019 to 2022 Q2, Grandeur 8 has an average psf of $1,234. With a total volume of 73 transactions, this is considered slightly low deal flow when compared to the others in the list. Regardless, Grandeur 8 was able to clock a CAGR of 7.1% and an Absolute growth of 23.0%.
Grandeur 8 is located in Ang Mo Kio, with a wide range of educational institutions nearby. Mayflower Primary School is under construction, and we have Yio Chu Kang and Anderson Secondary schools. We also have Anderson-Serangoon Junior College and Nanyang Polytechnic. All of these are within 600m of Grandeur 8.
Grandeur 8 is located between Yio Chu Kang and Ang Mo Kio MRT. Mayflower MRT on the new Thomson-East Coast Line can also be found in the west. There is some form of greenery around with the gardens nearby.
Overall, Grandeur 8 scores 66% on the MOAT Analysis. It scores a 5 on Rental Demand and Exit Audience, and a 4 on Quantum Effect. Grandeur 8 is located with more public housing in the surrounding area.
The Parents’ Attraction Effect is low mainly because there are fewer primary schools around the condo. However, a key selling point of the condo is that it has a good range of secondary and tertiary education institutions nearby.
Joint-First Place: The Gardens At Bishan
The joint-first in our top 5 list for district 20 is The Gardens At Bishan. This condo has a 99-year lease starting in 1997 and was completed in 2004. It has much more units compared to the previous entries, with a total of 756 units. There is a lot more diversity when it comes to smaller units and might appeal to young couples.
From 2019 to 2022 Q2, The Gardens At Bishan transacted at an average of $1,364 psf with a volume of 110 transactions. It achieved a very high CAGR of 8.0%, by far this is one of the highest growth numbers among individual condos and proved itself as an investment. This counts to an Absolute growth of 25.9% over the short span of 3.5 years.
It is located next to Thomson Grand. While The Gardens At Bishan is substantially older than Thomson Grand, it is transacting at a rather competitive price for its age. The high growth clocked by The Gardens At Bishan might be due to the presence of Bright Hill MRT.
The locational benefits mirror that of Thomson Grand. However, the core difference is the lower lease and that it is marginally closer to the MRT. Other than that, the appeal of great options for outdoor activities in the form of nearby green spaces.
The Gardens At Bishan has a total MOAT Analysis score of 64%. It scores a 5 on Rental Demand, Quantum Effect, MRT Effect. And scores a 4 on Volume Effect. The appeal is there when it comes to the demand from renters and the more affordable quantum.
Joint-First Place: Lakeview Estate
Finally, we have Lakeview Estate coming in at the top of the podium. It is a 99-year leasehold apartment with its lease starting in 1977 with a total of 240 units. While this is an older development, it managed to accomplish a high growth rate despite the effects of lease decay. Again this is a signal of strong demand for properties in District 20 from the Affluent segment.
From 2019 to 2022 Q2, Lakeview Estate transacted at an average of $1,050 psf. This is much lower when compared to the rest of the properties in the district. The volume is rather low, with only 15 transactions in this period. It is amazing that Lakeview Estate could achieve a CAGR of 8.0% and an Absolute growth of 25.9%.
In some way, it is like watching a 70 year old senior complete a full marathon. Such growth numbers are outliers for condos of this age and are bordering on being unbelievable. Nonetheless, the numbers don’t lie and it would seem that the effects of lease decay are not as apparent in District 20.
Lakeview Estate is located 400m away from Marymount MRT on the Circle Line and 600m away from Upper Thomson MRT. It is located very near the entrance of MacRitchie trails. Within the short span of 3.5 years, somehow Lakeview Estate has done phenomenally well.
There is no MOAT score available for this condo. Regardless, the prices have climbed tremendously since 2007. We have noticed a steady and steep increase in price since 2020. This post-pandemic growth might be due to the larger unit sizes found in this project.
From the recent transacted history, most of the unit sizes are 1,615 square feet. Some rarer apartments are sized at 3,035 sqft. Perhaps, part of the reason for the most recent appreciation for Lakeview Estate might be due to the demand for larger homes due to the work-from-home trends.
To conclude, District 20 has been a very attractive district for homebuyers in Singapore. While most of the developments here are medium-sized, there is still a strong pent-up demand from the Affluent segment. The central geography and wide range of popular schools are what appeal to most homebuyers looking at District 20.
In addition, District 20 offers many green spaces especially closer towards the Bishan and Thomson areas. Overall, District 20 stands much to gain from the URA’s plans for the North-South Corridor, which will improve connectivity and improve the conditions for people to travel via bicycles.
The recent completion of the Thomson-East Coast Line might also be contributing to why property prices in this district have been so expensive relative to the region. These expensive but sustained high prices relative to other districts are evidence of the strong demand for this district and prized location of being nearer to the city centre.